Should BI tools be developed in-house or outsourced?

MUMBAI, INDIA: Does an enterprise develop tools in-house or outsources BI tools is a pertinent query, especially when the organization is in a build strategy mode.

However, building the tools internally isn't for everyone, and it's often not the best way to start, according to Gartner.

It makes sense for an organization to build advanced analytics internally if:
• Analytics is a critical differentiator in its industry or if the area is of strategic importance
• High level of agility and granularity of control is required, and
• There are many opportunities across the organization to apply analytics in multiple use cases or lines of business.

However, in case BI and analytics leaders that do decide to build the tools and skillsets in-house, they must have the three core skills needed for advanced analytics:
Business skills: Apply analytics to the right problems and ask the right questions.
IT skills: Access the data, identify the required infrastructure and execute the insights.
Data science and quantitative skills: Take the right analytic approach to the data.

Unfortunately, this skill set is rarely found in one person, but it's essential to have all three skills within a team, Gartner lamented.

"Many business intelligence (BI) and analytics leaders are unsure how to get started with advanced analytics, and many organizations feel they must make a significant investment in new tools and skills," said Lisa Kart, Research Director, Gartner.

"But a successful advanced analytics strategy is about more than simply acquiring the right tools. It's also important to change mind-sets and culture and to be creative in search of success," she said.